Economic trends
Apart from inflation, which was more than 5.4% in 2011, all the macroeconomic data are sound and the country maintains its image of political and economic stability.
After having experienced a deep recession in 1999-2002, Uruguay revived with a growth higher than 6% in the years 2004-2008; after that, the country was affected by the global economic crisis and a strong drought. Contrary to many other countries, Uruguay has kept a positive growth in 2009 (2.9%), supported by the increase of public expenditures and investments. Thanks to the rebound of exports and the dynamism of domestic demand, the revival was quick and vigorous in 2010, the growth increased to 8.5% of the GDP. In 2011 this tendency continued with a growth rate of 6%.
The budget 2010-2014 has placed emphasis on the reduction of the public debt, the increase of expenditures in infrastructures and education, the creation of funds that will permit to face the fluctuations in the cost of electricity production due to bad weather. In the meantime, in order to encourage growth, the government is seeking to develop investment projects in the energy and transport sectors promoting public/private partnerships.
Uruguay has on one of the highest GDP per capita in South America, the unemployment rate is decreasing, in 2011 to 6% of the active population. However, in the same year, one fourth of the population was still living beyond the poverty line.
Main branches of industry
Agriculture (the largest export sector) and fishing contributes 30% to the GDP. Uruguay has rich agricultural land. Almost 90% of the land is devoted to livestock breeding (cattle, sheep, horses and pigs). Rice is the main crop, followed by wheat, corn and sugar cane. There is also a gardening market and fruit farming as well as a wine-growing industry all along the coast of the Rio de la Plata.
Agriculture and animal food processing account for half of the industrial activity, which represents about one fourth of the GDP. Other manufacturing activities include beverages (especially wines), textiles, construction materials, chemicals, oil and coal.
Services employ more than two thirds of the population and contribute over 50% to the GDP, mainly due to financial services and tourism.
International trade
Uruguay has an open economy and foreign trade represents about 55% of the GDP. Uruguay is a member of Mercosur (common market between Uruguay, Paraguay, Argentina, and Brazil).
its economy is based on industry, trade and banking services (Montevideo), as well as agriculture, livestock farming (in the center of the country) and tourism (East). Meat and cereals represent 30% of all exports and paper industry 7%. Tourism provides an large inflow of foreign currency, corresponding to 6% of the GDP in 2011.
Uruguay's main clients are: Brazil, China and the European Union. The commodities exported are mainly meats, dairy products, leather and raw skins, cereals and wool.
The country's main suppliers are Argentina, Brazil, China and the United States. The country mainly imports mineral fuels and oil, machinery, electric & electronic equipment, vehicles and plastics. Structurally in deficit, Uruguay's trade balance has seen an improvement due to the growth in exports.
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Last updates: May 2012
